No GST on granting permission for building construction provided by Rajasthan Housing Board: AAR

Case Details: Authority for Advance Rulings, Rajasthan Rajasthan Housing Board, In re - [2023] 146 taxmann.com 307 (AAR-RAJASTHAN)

Judiciary and Counsel Details

• • Umesh Kumar Garg & M. S. Kavia, Member
  • Manish Maliwal, CA & Virendra Parwal, AR for the Applicant.

Facts of the Case

The applicant- Rajasthan Housing Board (RHB) was providing services such as permission for building construction, approval of map, permission of additional Floor Area Ratio, leasing of land etc. It filed an application for advance ruling to determine whether taxability of services provided by it.

AAR Held

The Authority for Advance Ruling noted that the applicant –RHB was constituted by the State Government under Rajasthan Housing Board Act, 1970 and fully controlled by State Government since its members were appoint by the Government. Therefore, RHB would be treated as ‘Governmental Authority’ as defined in clause (zf) Paragraph 2 vide Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.

Moreover, services such as permission for building construction, approval of map, permission of additional Floor Area Ratio, leasing of land etc. provided by Rajasthan Housing Board would be covered under list of services enumerated under 12th Schedule of Article 243W of Constitution of India. Therefore, services of granting permission for building construction, approval of map, permission of additional Floor Area Ratio, leasing of land etc. would be exempted vide Sl. No 4 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.